BusinessNZ Service Overview

Signs of Recovery Emerge in the Service Sector

After enduring a prolonged period of hardship, many businesses within the service industry are finally seeing encouraging signs of improvement. The Performance of Services Index (PSI) climbed to 51.5 in December, breaking a 21-month streak of readings below the neutral 50 threshold. This upward movement, though modest, is a welcome indication of renewed growth.

While the PSI still lags behind its historical average of 52.8—and most key indicators, such as new orders, remain subdued—this is the highest score recorded since June 2023. Although the sector's recovery is not yet robust, the shift toward positive momentum is noteworthy, especially when considered alongside last month's significant gains.